The UK is experiencing the largest exodus of millionaires ever recorded for any country. According to the Henley Private Wealth Migration Report 2025, approximately 16,500 high-net-worth individuals are expected to leave Britain in 2025, more than double the outflow from China. This mass departure, dubbed “Wexit,” represents an estimated £66 billion in liquid assets leaving UK shores. Since 2014, the UK’s millionaire population has dropped by 9%, while the average growth among the world’s top 10 wealthiest nations was 40%.

Perhaps you are seeking the prestige and tax benefits that the Principality of Monaco offers. We have been receiving numerous requests from British High-Net-Worth Individuals (HNWIs) wanting to relocate to Monaco, and many have already settled happily in this glamorous haven on the French Riviera.

In this article, we will discuss the unique benefits of relocating to Monaco from the UK, and outline the key steps and legal considerations for obtaining residency in the Principality.

Why British HNWIs Are Leaving the UK

The UK tax environment has shifted dramatically under Chancellor Rachel Reeves, and the direction of travel is clear. The record millionaire exodus is being driven by a series of aggressive policy changes:

• Non-dom status abolished (April 2025): worldwide income is now taxable after just four years of UK residence, ending centuries of favourable treatment for internationally mobile individuals
• Pensions subject to IHT (April 2027): unused pension funds will count towards inheritance tax, with beneficiaries potentially facing combined rates of up to 87%
• IHT thresholds frozen until 2031: as asset values rise, more estates are being caught by fiscal drag each year
• Exit tax under serious consideration: a proposed 20% charge on unrealised gains when leaving the UK could soon become reality

Additionally, a formal wealth tax proposal (2% annually on assets exceeding £10 million) has gained traction among Labour MPs, signalling where future policy may head.

The window for tax-efficient relocation is narrowing. Those who delay risk being caught by exit charges or other measures designed to capture wealth before it leaves UK shores. For British HNWIs considering a move, the time to act is now.

Ways to Get Residence in Monaco

Typically, there are three main routes to obtain residency in Monaco:

• Residence through employment.
• Residence by setting up a business in Monaco.
• Residence by proving financial sufficiency (sometimes wrongly referred to as the “Monaco Golden Visa” route).

Given the current economic climate in the UK, especially the growing uncertainty surrounding the non-dom regime, many affluent British nationals are focusing on the third option. But what exactly does “proving financial sufficiency” mean in Monaco?

Unlike other jurisdictions that might stipulate a direct investment into local real estate or businesses, Monaco’s screening process is largely bank-driven. If you can make a minimum deposit (or investment) into a Monegasque bank, starting from around €500,000, this bank can provide a letter of recommendation. This document is essential to your residency application, as it signals to the Monegasque authorities that you have the financial means to live in Monaco without becoming a burden on the state.

Do bear in mind, however, that Monaco’s cost of living, particularly for accommodation, is among the highest in the world. Therefore, while €500,000 may be the minimum deposit in some banks, you will likely need a far higher net worth to comfortably reside and maintain a lifestyle in the Principality.

Types of Residence Permits in Monaco

Irrespective of the specific pathway you choose (employment, business setup, or financial sufficiency), there are three tiers of residence permits in Monaco:

• Temporary Residence Card (“carte de séjour temporaire”): Valid for 12 months, renewable twice. This is the permit new residents typically receive first.
• Ordinary Residence Card (“carte de séjour ordinaire”): Valid for 3 years, renewable indefinitely. You become eligible for this once you have held the temporary card for the initial term plus two renewals.
• Privileged Residence Card (“carte de séjour privilégié”): Valid for 10 years, and available to those who have legally resided in Monaco for at least 10 years.

To maintain your residence card, Monaco expects genuine residence in the Principality. Holders of the privileged residence card must typically reside in Monaco for at least 183 days each year to keep their status and obtain the Monaco tax certificate.

All these residence permits entitle you to live, work, and establish a business in Monaco, opening up a realm of opportunities in a highly affluent and secure environment.

Steps to Get a Residence Permit in Monaco

For British nationals, now treated as non-EU citizens following Brexit, the Monaco residence application process can be somewhat intricate.

1. Securing a Long-Stay Visa

Because the UK is no longer part of the EU, UK nationals need to apply for a French long-stay visa (Type D) if they plan to live in Monaco. This is because Monaco relies on French immigration channels. You should apply for this visa at the French Embassy or Consulate in the UK before applying for the residence permit.

In the event that you have already been residing in France for over a year, you might be able to transfer your French residency to Monaco directly, bypassing the long-stay visa requirement. However, this process can be quite technical, and professional guidance is recommended.

2. Providing Proof of Accommodation in Monaco

Applicants must show that they have secured appropriate accommodation within the Principality. Acceptable evidence of housing includes:

• A deed to a property in Monaco (in the applicant’s name).
• Documentation showing the applicant is a director or shareholder of a company that owns a Monaco property.
• A lease agreement of at least one year for a property in Monaco.
• Proof of living with a close relative who already resides in Monaco.

The Monaco authorities typically conduct checks to ensure the property is genuinely suitable for the applicant’s needs. Factors such as electricity contracts and the size of the property may be scrutinized.

3. Demonstrating Sufficient Financial Resources

Since many from the UK are now exploring Monaco as an alternative to the waning non-dom perks, you must still prove you can support yourself while living in Monaco. Examples include:

• An employment contract in Monaco, supported by evidence of salary.
• Being self-employed, with registration at the relevant Monegasque body.
• Acting as director of a Monaco-based company, with the appropriate documentation from Monaco’s company registry.
• Entrepreneurial plans, backed by a statement from the Department of Economic Expansion confirming feasibility.
• Being financially supported by a spouse or partner.
• Retiree status, supported by relevant pension certificates.
• A bank letter from a local Monaco bank, confirming a sufficient deposit or investment to fund your lifestyle in the Principality. The exact deposit required is at the bank’s discretion, but often starts around €500,000.

4. Submitting Additional Information

Applicants must provide a copy of their criminal records covering the last five years (from the countries where they have resided) to demonstrate good character. Additionally, the following items are typically required:

• A valid passport copy.
• A medical/health certificate.
• A birth certificate.
• Any other documents that may be pertinent to your personal situation.

5. Paying the Relevant Fees

The fees for Monaco residence permits are €80 for a first temporary permit, €100 for an ordinary permit, and €160 for a privileged permit. Renewal fees range from €40 to €80 depending on permit type.

Please note these charges do not include translation costs, medical checks, or additional services required during your application process.

6. Filing Your Application and Attending the Interview

Usually, a local lawyer or accredited advisor will file your application. Afterwards, you will be asked to attend an interview with the Residents Section of the Directorate of Public Security. This can often be conducted online, but you will still need to present the original required documents at the time of the interview. Topics can include your family background, education, work history, and overall qualifications.

Once the interview is completed, your application will be processed. For UK (non-EU) nationals, the timeline to receive a residence card in Monaco generally ranges from 16 to 20 weeks.

Will You Pay Taxes in Monaco?

Monaco is famous for having no personal income tax. Indeed, the Principality does not impose direct taxes on income, capital gains, or wealth for its residents. This policy dates back to 1869, when Monaco abolished personal income tax.

The inheritance and gift tax regime is similarly appealing. If assets pass between direct line relatives (spouse, parent, or child), no inheritance or gift taxes generally apply.

Monaco doesn’t levy a property tax in the conventional sense, but there is a 1% rental tax, along with a real estate transfer tax when properties are sold. Overall, it remains one of the most tax-efficient jurisdictions worldwide.

UK Tax Residency After Moving to Monaco

Moving to Monaco does not automatically end your UK tax obligations. There is no double tax treaty between the UK and Monaco, which means you cannot claim treaty relief on UK-source income. Even after becoming non-UK resident, you will still be liable for:

• UK income tax on rental income from UK property
• Capital gains tax on UK residential property sales
• Potential withholding taxes on certain UK-source interest and royalties

Whether you remain a UK tax resident depends on the Statutory Residence Test (SRT). To be considered non-UK resident, you generally need to meet one of these conditions:

• Spend fewer than 16 days in the UK (if you were UK resident in any of the previous 3 tax years)
• Spend fewer than 46 days in the UK (if you were not UK resident in any of the previous 3 tax years)
• Work full-time overseas with limited UK workdays

If your UK days fall between these thresholds, your residence status will depend on how many UK “ties” you retain, including family in the UK, available accommodation, substantive work, or having spent 90+ days in the UK in prior years. The more ties you keep, the fewer days you can spend in the UK without triggering tax residency.

Careful planning before departure is essential. This includes managing the timing of your move, reducing UK ties where possible, and keeping detailed records of your days in and out of the country.

For detailed guidance, see HMRC’s RDR3 guidance and the HMRC Residence Manual. We strongly recommend professional tax advice to ensure you are not deemed UK tax resident after relocating to Monaco.

Interested in Moving to Monaco from the UK?

With the abolition of the non-dom regime, pensions now subject to inheritance tax, and an exit tax under consideration, it’s no surprise that British HNWIs are increasingly moving to Monaco.

Monaco Relocation Group has extensive experience guiding UK nationals through this transition. From handling UK tax matters and the exit process, to assisting with Monaco’s residence permit application and local tax registrations, we provide a seamless service. Our local presence and contacts in both Monaco and the UK make us an ideal partner for your move.

If you have any questions or wish to receive individualized advice on relocating from the UK to Monaco, get in touch here or email us at [email protected].

Sources:

• Henley Private Wealth Migration Report 2025 – UK Millionaire Exodus
• Monaco Government – Residence Permit
• Monaco Government – How to Apply
• HMRC – Statutory Residence Test (RDR3)
• HMRC – Residence Manual